1. An investor enters into TWO long futures contract when the futures price is $1,600. Each contract is on 100 units of the asset. The contract is closed out when the futures prices is $1,640. Which of the following is true?
The investor has made a gain of $8,000
The investor has made a gain of $3,000
The investor has made a loss of $8,000
The investor has made a loss of $3,000
2. Interest rate risk increases with:
both increases in time to maturity and coupon rates.
increases in time to maturity and decreases in coupon rates.
increases in coupon rates and decreases in market rates.
decreases in market rates and increases in time to maturity.
both decreases in coupon rates and market rates.